I think that it is a bit too late of a point on the 360's life-cycle to start working on a new online service that will probably take at least a year and a half to put into service once MS decides to actually go through w/ this idea. MS would probably be better served by starting soon on a social networking service for the 720.
And now that I think about it anyway, there probably aren't that many ways to make a 3-d social networking service, without one looking like a ripoff of another, which MS would probably want to avoid. So, this is one project that MS will have to think pretty carefully about before implementing







